Pakistan's Ex-Navy chief confirms 'kickbacks' in French submarine deal

Former Naval chief Admiral Abdul Aziz Mirza has given credence to the allegations in a French investigative report that almost $49 million kickbacks were received in the Agosta-submarine deal by Asif Ali Zardari and others, including Naval officers during the Benazir era. He also disclosed that the then Benazir government had urged the Pakistan Navy to go for the French subs, a report in the News International says.

Mirza, while quoting the then Naval chief Admiral Saeed Khan, revealed that Benazir Bhutto’s defence minister Aftab Shaban Mirani had clearly indicated to the Navy’s high command the government’s preference for the induction of the French submarines.

Despite these clear indications by the defence minister, the top naval command again met and deliberated on the subject and decided to recommend two options to the government — the British Upholder and the French Agosta. The government later approved the induction of the Agosta, the News report says.

Mirza headed the Pakistan Navy from Oct 1999 to Oct 2002,. The News report authored by Ansar Abbasi q otes Mirza as saying that the Navy first formally came to know about the kickbacks in the Agosta deal in 1998 following which ithree officials of the rank of captain and commodore were axed.

“My hunch is that besides the politicians, some top ranking naval officers, even above the rank of commodore, might also have received kickbacks as reflected in the recent French media reports. They, however, (the top Naval officials) remained undetected for want of proof or witnesses,” Mirza said.

He claimed that even the condemned formal Naval chief, Masoorul Haq, was not convicted of the Agosta kickbacks but for the bribes that he had pocketed in other defence deals.

According to a recent report in a leading French newspaper, investigations have revealed that Zardari received $4.3 million in kickbacks from the sale of three Agosta 90 submarines for Eu825 million. These reports also suggest that Naval officials might have received kickbacks out of this $49 million.

This deal was struck during Benazir Bhutto’s second tenure in 1994. According to The News, former DG Naval Intelligence Commodore Shahid Ashraf had informed in early 1995 the then Naval chief Mansoorul Haq and his vice chief vice admiral AU Khan of the cash pay off to Capt ZU Alvi and Col (retd) Ejaz for further distribution amongst Naval officers.

Ashraf claimed in a 1998 statement that he was however asked to keep quiet. and was later victimised ‘to save the skin of Naval officers’.

Admiral Mirza admitted that Ashraf made the very same claim in his statement in 1998 and that retired vice admiral AU Khan too had confirmed the same fact when questioned in 1998 by the fact-finding inquiry. Nonetheless, Admiral Mirza insisted the ex-DG Naval Intelligence received kickbacks in the Agosta deal.

Mirza, who also served as Pakistan’s ambassador to Riyadh, said that Zafar Iqbal, a middle man of the French company, was also interrogated and had admitted to have received $160,000 to be paid to four commodores. He, however, said that both Iqbal and Ejaz never paid this amount to anyone of them. The fourcommodores were never charge sheeted or confronted by a board of inquiry as a fact-finding inquiry ‘found’ them innocent; they were later promoted as rear admirals.

Zafar Iqbal’s role as middleman was limited to ‘bribing’ Naval officials up to the rank of commodore. The French company engaged other middlemen to bribe top Naval officers and politicians.. One of these middlemen has been identified as Aamir Lodhi, according to Karachi daily.

None of these middle men in the Agosta deal were ‘caught’ and questioned’.

It remains a secret as to who amongst the senior most Naval officers of the time received how much money, the former naval chief lamented. He however continues to give credence to the French media reports on Agosta kickbacks,. That is because the French, Germans, Italians and other Western manufacturers of defence equipment have a ‘recognised provision ‘ of about 10 pc of the contract value as kickbacks, entertainment and gifts as a matter of policy.

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